Tuesday, April 07, 2020

The fuss about government debt


In the wake of the coronavirus pandemic, governments around the world have passed very large stimulus packages. Some of the numbers are: \$2 trillion in the US, \$990 billion in Japan,  \$814 billion in Germany. There has been little opposition to the measures, with much of the debate centering around which industries get bailouts, what segment of the population receives checks in the mail etc. This is in sharp contrast to the situation about a decade or so ago, when the financial crisis of 2008 and the so-called Great Recession that followed it prompted major interventions by governments.